LendInvest has priced its third securitisation involving prime buy-to-let mortgages.
The oversubscribed transaction, arranged by Citi alongside HSBC, National Australia Bank and Standard Chartered Bank, has been priced at 0.077 per cent over the sterling overnight index average.
That is 37 basis points better than LendInvest’s last securitisation that closed in March 2020, days before the UK went into national lockdown last year.
A stock market update through LendInvest Secured Income plc earlier this month showed that its parent company, the alternative property lender, has securitised £280m of UK prime buy-to-let mortgage loans.
It was given an AAA rating by Moody’s and S&P Global Ratings.
“It’s fantastic to announce the completion of this transaction, the third of its kind for the business since we kicked off our residential mortgage backed securities programme in 2019,” Rod Lockhart, chief executive of LendInvest, said.
“This transaction is another key example of the strong momentum we’ve exhibited over the last year as the business goes from strength to strength.
“We continue to be focused on leveraging our proprietary end-to-end technology platform to transform property finance, providing investors with access to an attractive asset class while proving to borrowers that property finance does not have to be characterised by rigid products, poor customer experience and manual, paper-based processes.”
It follows a landmark £259m securitisation by LendInvest in June 2019, which made it the first marketplace platform to securitise its own assets.
The securitisation is part of LendInvest’s strategy to drive down its cost of capital and continue its move towards the mainstream mortgage market.
Read more: P2P securitisation boom still on the cards
In addition to reducing the cost of funding, the process frees up LendInvest’s capacity to fund future buy-to-let mortgage loans as the company continues to win market share from traditional bank lenders, the platform said.
LendInvest used to be a member of the now defunct Peer-to-Peer Finance Association, before it withdrew its P2P regulatory application in 2017 and closed its platform to retail investors.
It now focuses on City investors and has secured a number of large institutional funding lines, including separate £200m agreements with HSBC and the National Australia Bank.